Hunter Financial Group Outlines Steps to Acquiring a Loan
As a full-service mortgage company that provides extensive mortgage and lending services, Hunter Financial Group understands that obtaining financial assistance towards homeownership is a complex process. While many Americans may find themselves wanting to own a home of their own, today’s housing market has created conditions that make it difficult for the average citizen to obtain an adequate, well-formed loan. However, this company notes that those who fully educate themselves on the loan process will find greater success in finding the monetary assistance they need to pursue their dreams. As such, this company outlines the major steps of the loan process to help individuals get started on the right foot towards greater independence.
Prequalification
As noted above, obtaining a home loan is a difficult process that requires proper preparation. In order to secure a mortgage loan, those who are on the path toward homeownership, must first find a home that they hope to purchase. With the right real estate agent, individuals can find a home that meets their lifestyle needs that also fits within their budgets. If an individual has a greater understanding of what kind of loans they may qualify for, they can improve their search for properties that fit within those numbers.
However, one can apply to become prequalified for a home loan. While this may seem like an additional step, it can make certain buyers more attractive to sellers as they are able to offer greater financial backing for a more secure transaction. Many people can pursue prequalification services free of charge and receive results within a short time frame—sometimes in as little as a few hours. This application will assess an individual’s credit and financial circumstances. After reviewing these factors, a loan specialist may be able to determine a rough amount of funding that will be available to the buyer.
Establishing Contracts
First-time homeowners should take time to understand the negotiations and agreements that are determined when an individual is set on purchasing an ideal home. Once a price is determined between the buyer and seller, they will create and sign a sales contract that basically outlines the demands required by each party involved with the transaction.
After these finer details are determined and signed within a contract, a loan specialist will review circumstances with the buyer. This will begin the loan process and the extensive dialogue that forms between the lender, loan specialist and loan officer in order to secure the loan.
Seeking Approval through Underwriting
A chosen loan specialist will review necessary documents, in addition to assessing survey, income verifications and title information. After this step, the loan specialist will then carefully prepare a loan package to submit to an underwriting department. The underwriting process is important as it is where the decision on the loan is made. Although stressful, during this phase, buyers will find out if they are approved, not approved or are approved under certain conditions.
Closing Process
The loan specialists at Hunter Financial Group explain that if a buyer meets approval for a home loan, clients are set to experience the closing process. During this phase, it is important that both the loan specialist and buyer work together to make sure that all the numbers within the approved loan are accurate. As many official parties are involved with this process, it is the loan specialist’s responsibility to verify funding and disbursement amounts, confirm HUD stipulations and coordinate signing times with a closing agent. At this point, while an individual may have covered their bases to achieve funding, Hunter Financial Group recommends that the buyer make plans to stay proactive and move within a week’s time to ensure that the seller adheres to any repairs or structural agreements outlined by the contract.
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